Sales Return- Real Estate Developer

[Vamsi Krishna]

Hello sir

We are engaged in the construction of Flats (Hyd, Telangana) and by June'17 we have raised Invoices against sale of flats from customers based on various mile stones as per Agreement of sale and discharged Service tax @ 4.5% (availing 26/2012 notification) and 1.25% of VAT.

Few of the flats booked in 2015-16 & 2016-17 are now being cancelled by customers, we have completed 80% of the construction and yet to receive Occupancy Certificate ( Completion certificate).

Now in the month of July'17 , shall i raise Credit note and reverse both the ST & VAT credit and claim refund. And if so ,,

a) Can i claim the refund of VAT as SGST and ST as CGST ?

b) Can i claim refund even for the flats for which ST has been paid in 2015-16 ? ( 6 months prior to the appointed day has been given in the transitional provisions).

Can any expert share views ...

Thanks ..

AI Summary

Developer Seeks Refunds for Pre-GST Sales Cancellations; Queries on VAT as SGST and Service Tax as CGST Refunds A real estate developer involved in constructing flats in Hyderabad, Telangana, raised invoices and paid service tax and VAT on sales made before the implementation of GST. Some customers canceled their bookings, and the developer, having completed 80% of construction without an occupancy certificate, inquires about issuing credit notes and reversing tax credits to claim refunds. Specifically, they ask if VAT can be refunded as SGST and service tax as CGST, and whether refunds can be claimed for service tax paid in 2015-16. An expert responds, asking if the issue has been clarified.